Analysis of Performance Management and HR Practices at DB Schenker

This report provides a comprehensive analysis of DB Schenker's performance management and human resource practices, highlighting the links between employee performance, HR practices, and overall organizational success. It identifies key HR practices such as employee engagement, work-life balance, performance appraisal, and corporate volunteering, evaluating their impact on employee motivation and organizational performance. The report also addresses potential barriers to achieving performance targets, including employee change resistance, poor leadership, increasing competition, and cultural diversity, suggesting strategies to overcome these challenges. Furthermore, it evaluates the role of Human Resource Development (HRD) at DB Schenker, focusing on training and development initiatives aimed at enhancing employee skills and aligning them with the company's goals, while also recommending possible improvements to enhance organizational performance in the competitive logistics industry. This document is available on Desklib, a platform offering a wide range of study resources for students.

Running Head: PERFORMANCE MANAGEMENT
Performance Management

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Table of Contents
Task 1.1...................................................................................................................... 3
Task 1.2...................................................................................................................... 4
Task 2.1...................................................................................................................... 6
Key HR and performance management practices......................................................6
Employee Motivation and Engagement...................................................................6
Work-Life Balance................................................................................................... 6
Performance Appraisal............................................................................................ 6
Corporate Volunteering........................................................................................... 6
Possible Improvements.............................................................................................. 7
Task 2.2...................................................................................................................... 7
References............................................................................................................... 10

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Task 1.1
DB Schenker is one of the major providers of multimodal and Road
transportation all over the world. In the year 1872, Gottfried Schenker
started his business with a single truck. Now with more than 140 years of
offering logistics solutions, this company leads in providing trustworthy
transportation services. Since its establishment, the organization has
experienced significant growth in logistics industry (DB Schenker, 2018). The
major reason behind its growth and success is the use of effective human
resource management practices and strategies. In order to manage its staff,
DB Schenker has implemented effective HR practices which led them
towards employee engagement and satisfaction. In turn, it helps the
organization to attain its predetermined goals and increase the overall
performance of organization. There is a strong link between HR practices,
employee performance and organizational performance (Bratton and Gold,
2017). The HR practices of DB Schenker Logistics Company and performance
of employees and organization are linked with each other.
To manage and retain its human resources, DB Schenker is using different
HR practices like employee engagement, work–life balance and employee
feedback system and performance management. Employee engagement is
one of the major HR practice which the enable the DB’s team to improve the
performance of employees and company. Under this, the company considers
its employees as their greatest asset. That’s why it involves them in its
decision making process. It believes that engaged team is the significant
factor for enticing and retaining the best talent in intense competitive
environment (Forslund, 2012). In order to engage its human resources, it
has taken many initiatives like best benefits to employees, competitive
salaries, paid leave policies, health care offerings etc. These initiatives assist
the organization to make the employees engaged in their jobs and

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responsibilities. With the engagement and trust, human resources are more
likely to drive better level of productivity and success to business.
Moreover, DB Schenker is providing work-life balance arrangements to its
employees that force to work harder towards organizational objectives. The
vacation and leave policies of this company demonstrate its belief in work-
life balance. It helps the employees to maintain their personal relationships
and health and it also enhances the work performance of the employees
(Isaacs, 2016). It reflects from the performance and development of
company in global logistics industry. Along with the above HR practices, DB
Schenker has adopted performance management and employee feedback
system. With the annual performance review, this organization provides a
frequent feedback to its employees. This feedback will provide them with the
information and they will always know about what their objectives are and
how they are enhancing in their role. In order to give feedback to the staff,
the top management of DB Schenker asks its middle level managers to sit
with the employees once a quarter to discuss about their performance (DB
Schenker, 2018). It not only enables the managers to become connected to
the employees, but it also makes the employees feel engaged in their tasks
and responsibilities. Ultimately, it has a significant and positive impact on
the performance of organization. It indicates that there is a strong
connection between HR practices, employee performance and DB Schenker’s
performance.
Task 1.2
Performance targets are the desired level of performance the company
wants to see, as measured by indicators which show the growth and success
at attaining its outcome. At DB Schenker, there are inventory levels, gross
profit, cost of goods sold, stock losses/damages, total logistics costs, perfect
order, percentage of order accuracy etc. The company is aimed to attain its
performance targets by adopting effective HR practices (DB Schenker, 2018).

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There are various barriers which are faced by DB Schenker to approach its
performance targets like:
Employee Change Resistance
Employee change resistance is the biggest barrier to attain the performance
target of a company. Resistance is very normal reaction from the employees
towards change in the processes, system and activities of company. At DB
Schenker, it is the biggest barrier which can resist the company to attain set
and perform targets. When company implements changes in its supply chain
and logistics operations, the employees start to oppose the change and work
with lower morale. In turn, it affects the company’s overall performance and
its targets (Shaukat, Ashraf and Ghafoor, 2015).
Poor Leadership
At DB Schenker, poor leadership is another barrier that can have adverse
impact on company’s performance targets. The company has poor culture
and leadership styles which demoralizes the employees from their jobs that
can influence offering the logistics services to their clients. Top management
is not able to understand what exactly they are doing. It can stop the firm to
achieve its objectives.
Increasing Competition
In the logistics industry, there is an increase in the competition as new
players are emerging with advanced technologies and techniques. There is
change from the cross border operations to local services of internet (Sikora
and Ferris, 2014). Considering the prices of competing brands, DB Schenker
is lowering its prices that can affect company’s performance target like
sales, gross profits etc.
Cultural Diversity

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In the logistics business of DB Schenker, cultural diversity is one of the major
barriers that can stop the company to reach its performance objectives and
targets. The workforce at DB is very diverse so it is very difficult to manage
the cultural diversity in the workplace. Additionally, this company is offering
its logistics services across the international borders so its client is also
diverse. The people are not able to communicate with them properly that
can affect the company’s target (Banks, 2015).
In order to overcome the above barriers, DB Schenker can adopt some
effective strategies. To overcome the barrier of change resistance, the
organization can involve the employees in the making decisions regarding
changes in systems and processes. It needs to engage the employees who
are opposing the change in organization. Additionally, to overcome the issue
of cultural diversity, the company can conduct training and development
program so that they can be aware about the language and culture of
different backgrounds (Mone and London, 2018). The leaders can adopt more
effective leadership and management styles so they can manage the
workforce of DB Schenker. These strategies will help the organization to
overcome the above mentioned barriers which have adverse impact on
performance targets and objectives of DB Schenker.
Task 2.1
Key HR and performance management practices
For effective management of human resources and attainment of company’s
objectives, DB Schenker Organization has implemented some major HR and
performance management practices.

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(Source: By Author)
These practices are discussed below:
Employee Motivation and Engagement
DB Schenker believes that a motivated and engaged employee is the one
who demonstrates willingness and commitment to assist beyond their
normal work that leads them to effective and better business performance.
Considering this fact, the company uses this HR practice by involving the
employees in decision making process of the company. When it implements
any change management program in practice, it takes the opinion and ideas
of employees. This assists the organization to avoid the situation of change
resistance. Additionally, it motivates them by providing both monetary and
non-monetary benefits (DB Schenker, 2018).
Work-Life Balance
Work-life balance is a term that is used to define the balance which an
employee needs between time assigned for work and other aspects of
personal life. It is the most effective HR practice that forces the employees to
HR
Practices
Work-Life
Balance
Corporate
Volunteering
Performance
Appraisal
Employee
Engagement

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work with DB Schenker Company for a longer time. In order to retain
employees, this company is focusing on balancing the employees’ workplace
and personal life. For this, DB Schenker is committed to providing the best
benefits to the employees like optimal health care offerings, vacations, paid
leaves and care services (Deery and Jago, 2015).
Performance Appraisal
Performance appraisal is the best way to motivate the employees towards
their roles and responsibilities in the organization (Bailey, et al, 2018). With
an annual performance appraisal program, this company provides frequent
feedback on the quarter basis. In this, managers talk with the employees and
give feedback on their performance. It can have positive impact on the
employees’ performance that in turn improves the organization’s
performance.
Corporate Volunteering
In addition to above HR practices, corporate volunteering is a unique practice
that DB Schenker uses to facilitate its human resources and their
performance. The company is totally convinced that social responsibility is a
major factor for the long term growth and success of its business. Therefore,
it is focused on investing in the employees and offers them opportunities to
learn, grow and have a positive effective through corporate volunteering. It
encourages its employees to communicate with the local communities and
assist them (DB Schenker, 2018).
The above HR and performance management practices assist DB Schenker
to manage its staff and improve their skills and performance for the benefits
of company.
Possible Improvements
However, DB Shenkar has adopted effective practices and strategies, but still
there is a scope of improvement. The organization needs to focus on its HR

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leadership strategies so that they can develop their operations effectively. At
DB Schenker, it is very important to develop the responsiveness and
flexibility in its operations so that they can meet the needs of clients
efficiently. It should increase the usage of staff and other resources. The
company should provide training and development sessions for the
employees. It will enable them to work according to the employee laws and
standards applied in logistics industry. There should be continuous training
and development program for the employees (Gerrish, 2016). In this way, DB
Schenker can enhance its overall performance in competitive logistics
industry.
Task 2.2
Human Resource Development (HRD) plays an important role in overall
growth of organization. The role of HRD keeps changing on the basis of
changing patterns of company’s processes to handle and manage the
workforce. Different practices and strategies keep coming towards HRD for
managing the employees who have different exposures, different styles,
changing background and determined approach for company’s productivity.
HRD has a significant role at DB Schenker in terms of training and
development. This company believes that by hiring, selecting and training
the right candidates for right jobs, the HRD of DB Schenker is able to
enhance their performance as per the requirements of their jobs (Kolachi and
Akan, 2014). Therefore, the role of DB’s HRD becomes more critical in terms
of training and development of employees and in searching the ways in
which it can sharpen their skills and knowledge.
At DB Schenker, HRD is the framework that has an obvious vision about the
skills and abilities of the people who are working in the interest of
organization. It contributes in taking the long term and broad view about
how the practices and policies can assist the attaining of its strategies and
goals. It works with the objective to enhance the abilities and skills of

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employees and align them with the company’s goals. The management of
company states that human resource is a key source of competitive
advantage at DB Schenker so it is very important to conduct continuous
training and development program for them (Saks, 2015). The HRD strategy
of DB Schenker comprises striving for perfection and excellence. It is not
possible without continuous development of the capabilities of employees.
Considering this, DB Schenker provides its people with both different internal
and external training courses. Specifically, it offers two periodical training
programs i.e. School of Young Leaders and School of Leaders (DB Schenker,
2013). Both of these courses are proposed to enhance the qualifications of
employees. They associate the training and development sessions with the
project execution and significant cooperation with the senior managers and
supervisors.
Apart from above training course, HRD provides different opportunities to DB
Shcenker’s employees in order to gain new skills and experiences through:
 Involvement in project groups
 Internship in other teams
 Managerial coaching and mentoring
 Participation in employee volunteering
 Different certification courses
 Partaking in conferences
 Financial assistance for higher education
 Training for learning about foreign language and culture
 Involvement in EFQM group
 Study about lean culture

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(Source: DB Schenker, 2013)
At DB Schenker Logistics, HRD work as a team and think that a major part of
enhancing competencies and skills make learning from other employees (DB
Schenker, 2013). It can be stated that feedback from superiors and
colleagues is the most precious source of knowledge and it is the foundation
for both personal and professional development of employees. In this way,
HRD at DB Schenker is making a significant contribution to the training and
development of employees of the company. It enables the organization to
get a valuable outcome from the employees’ performance that in turn
enhances the overall performance and position of organization in
competitive logistics industry.

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